Rents increase and yields are stable

Landlords with rental properties in England and Wales have seen rents increase in most areas over the past year, according to the latest index.

The findings from Your Move show that the strongest rent growth was seen by landlords in the North West.

The index highlights that the average rent being paid by tenants is up 3.2% over the year to reach £938.

Yields have also stabilised across England and Wales and rents are rising more slowly in the south east and London.

The research from the estate agency also reveals that rents have remained stable in Scotland and landlords in four out of five regions are enjoying yields of 4.8% on average.

The highest rent is £669 for homes in Edinburgh. However, Glasgow and Clyde recorded a 6% year-on-year fall in average rents to £541 per month.

Northern England continue to enjoy better returns

Your Move also point out that their research reveals that landlords with property in Northern England continue to enjoy better returns than most other places.

The average yield for a property in the north east is 5.1%, and in the north west 5%.

The firm's national lettings director, Martin Alderton, said: “The strongest rent growth is in areas away from the south east and London and as activity in London slows, activity and prices have risen in the North.

“The yield levels have stabilised across most areas after being squeezed which is good news for landlords and shows the sector’s resilience.”

Northern England has greater influence on BTL market

Meanwhile, a report from Commercial Trust reveals that regions in the North of England are having a greater influence on the UK's buy to let market.

The BTL mortgage broker reveals that the proportion of new purchase applications in the North has rocketed over the last year.

Applications from landlords in the north east has seen a 78% increase followed by Yorkshire and Humber with a 73% increase.

Applications also soared in the north west, year-on-year, with growth of 25% while in the south east applications rose by 17%.

The firm says that while London continues to attract most buy to let purchase applications, the capital's influence is waning and there has been a 25% fall in overall business share this year.

The Commercial Trust's chief executive, Andrew Turner, said: “There is a resurgence in buy to let activity in the north east of England. With cheaper property prices typically and strong demand for homes to rent and thriving student populations means there's plenty of incentive for property investors to look north.”

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